Nasdaq eyes stricter listing rules after review of suspected pump-and-dump schemes

[NASDAQ Stock Market Concept with Financial Bar Chart]
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Nasdaq (NASDAQ:NDAQ [https://seekingalpha.com/symbol/NDAQ]) has proposed updating [https://seekingalpha.com/pr/20220479-nasdaq-proposes-changes-to-its-listing-standards] its listing standards, including a higher minimum public float and stricter requirements for Chinese companies.

The proposal follows Nasdaq's (NASDAQ:NDAQ [https://seekingalpha.com/symbol/NDAQ]) "proactive review of trading activity, particularly emerging patterns associated with potential pump-and-dump schemes [https://seekingalpha.com/news/4486364-penny-stocks-pump-and-dump-concerns] in U.S. cross-market trading environments" the exchange operator said.

Nasdaq (NASDAQ:NDAQ [https://seekingalpha.com/symbol/NDAQ]) proposed reintroducing a $25M minimum public offering proceeds requirement for Chinese companies. The requirement was in place for companies in "restrictive markets," but this became null when the Public Company Accounting Oversight Board was able to inspect auditors based in China in 2022.

The proposed changes also include a $15M minimum market value of public float for new listings, and an accelerated suspension and delisting process for companies with listing deficiencies and a market value of listed securities below $5M.

Nasdaq (NDAQ [https://seekingalpha.com/symbol/NDAQ]) will continue to actively refer cases to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) on potentially manipulative trading activities.

The company submitted the proposed rules to the SEC for review and, if approved, plans to implement the changes promptly.

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